Financial Technology - INDUSTRY NEWS

[January 21, 2013]

SGX to provide choice of clearing OTC transactions for international customers

Jan 21, 2013 (Datamonitor via COMTEX) --
Singapore Exchange, or SGX, a provider of services related to securities and derivatives trading, has announced that it is providing international customers from February 25, 2013, the choice of clearing over-the-counter, or OTC, transactions as swaps or futures contracts, broadening access to Asian OTC commodity and financial derivatives markets.

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SGX AsiaClear will offer a suite of futures contracts called AsiaClear Futures, starting with Iron Ore, Freight and Oil, which is fully fungible with bilateral swaps currently cleared by the exchange. International customers, including US customers, will be able to meet their risk management needs with swaps and/or futures in SGX AsiaClear. With an open clearing infrastructure for fully fungible products, the convergence of liquidity in a single clearing venue averts price fragmentation and promotes secure and efficient risk transfer, the company said.

Michael Syn, head of derivatives at SGX said, "We are committed to helping our customers throughout Asia, Europe and the US navigate the complexity of rapidly evolving risk management and regulatory requirements. Customers using our unique SGX AsiaClear service are free to choose transaction modes which best fit their needs while clearing through a single venue."
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